Tuesday, February 26, 2008

What is an Art Appraisal?

This seems like a simple question but I have found that this is what people misunderstand the most about appraisals.

First, it is important to know that the value for different types of appraisals is different. While a painting may be appraised for $10,000 for insurance purposes, the same painting may be appraised for estate purposes for $6000. Don't be fooled. There is no set formula. Instead, the values for the different types of appraisal are defined by the IRS and different marketplaces are used.

What is a Marketplace?An auction is a market place. A retail store is a marketplace. A flea market is a marketplace. You will often hear appraisers refer to "Fair Market Value" or "Retail Replacement Value". These values are defined by the IRS and an appraiser must use the appropriate market for each type of appraisal.

How do I know What type of appraisal I need?A good appraiser will understand the different types of appraisals. You will only need to tell them that the appraisal is for "insurance", "sale", "estate", "divorce" etc. The appraiser will then know what type of value to use when appraising your art work.

How does an appraisal work?When a client calls me for an appraisal this is usually how the conversation progresses.1. Discuss the reason for the appraisal2. Explain the contract (the contract states that all information that is within the knowledge of the client will be given to the appraiser this includes but is not limited to bills of sale, insurance records, and auction records)3. Set an appointment for an on-site inspection4. Inspect the work for artist, title, condition, size, quality, and subject matter.5. Go back to office and complete historic research and market research6. Type and bind the appraisal and send two copies to the client.

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ABOUT THE APPRAISER

Christian Trabue is an art, antiques, and collectibles appraiser and a member of the Appraisers Association of America. She lives and works in Kentucky but completes appraisals in other parts of the country as well. Ms. Trabue completed her undergraduate degree in art history at Centre College, attended the University of Louisville for her graduate work in art history and, received a certificate in Personal Property Appraisal from New York University. She is a member of the Appraisers Association of America (AAA) and has taken and passed the Uniform Standards of Professional Appraisal Practice (USPAP). In January of 2009 she joined Enservio Select as a fine art and antiques appraiser.